This article originally appeared Sept. 6, 2013, on Real Money. To read more content like this, + see inside Jim Cramer's multi-million dollar portfolio for FREE Click Here NOW.First Solar ( FSLR), headquartered in Tempe, Ariz., is a manufacturer of thin film photovoltaic modules, or solar panels. It also provides PV power plants and supporting services that include finance, construction, maintenance and panel recycling. The company is quite popular among traders and investors alike. It trends very well with smooth fluctuations in the larger trading channels, and it has a reputation for explosive moves with entry triggers that appear at relatively reasonable price points. Shares of First Solar have fallen in and out of favor quite often in recent months. After soaring in April to establish a third wave of buying on the weekly time frame, the shares began to pull back and correct over the summer months. Slowing momentum into May's highs helped fuel that corrective move. By the end of June, First Solar had given back about 50% of the gains it had made during the second-quarter rally. Shareholders' disappointment continued as the correction unfolded. The strong price support at the midsummer lows resulted in a rally into July, but the momentum of that upside was still more gradual as a whole than the prior drop. This eventually led to a second major pullback on the weekly time frame throughout August.
First Solar has been in rally mode over the past two days, but it will be striking intraday resistance early in Friday's session. I will monitor the security for a gradual pullback off that resistance heading into next week.Ideally, this pullback will be slower than the one that began on Aug. 23 and lasted until Wednesday morning, and volume will further decline as this smaller intraday trend is created. A break to the upside out of that channel would trigger a buy. It is quite possible that this correction could take up to a week, or even a day or two longer, to develop. If it can manage to do so without attempting an earlier break higher, the odds for a successful recovery into the mid-$40s becomes plausible. First Solar would need a chance to pause in order to catch its breath. On the other hand, a less-than-ideal reversal off this low would make it more difficult to break resistance at between $40.50 and $41. The $35 level is the support zone that I want to see hold going into an upside channel breakout in order for this recovery attempt to have a strong chance for success. At the time of publication, Hansen had no open position.